Vale SA is holding talks with Brazilian officials about expanding the world’s largest open pit iron-ore mine to meet growing Chinese demand for the high-grade ore.

The Rio de Janeiro-based company recently sat down with regulators to discuss expanding its $14 billion mine located in the Amazon rainforest, which hasn’t even reached capacity yet. At the meeting, Vale mentioned the possibility of increasing ore-processing infrastructure and the railway that hauls the steel-making ingredient to port, Brazil’s federal environmental agency Ibama said in an email.

Vale is looking to shore up its position as the world’s leading producer of better quality ore just as Chinese steelmakers look to improve efficiency, reduce emissions, and comply with stricter environmental restrictions.

Vale’s initial plan had been to reach the mine’s peak capacity and then stay at that level, but demand for S11D’s ore might present an offer that can’t be refused. During a recent earnings call, Vale Chief Executive Officer Fabio Schvartsman said the company was mulling an expansion that, if approved, would have “minimal” costs and be done “in a very short period of time.” Schvartsman said Vale would let the market know its plans in December.

Vale declined to provide additional comment. Ibama didn’t say how long it would take to analyze or approve an expansion at S11D if the company submits a formal request.

Touted as the industry’s biggest project, S11D began shipments in 2017 and produced about 22 million tons in its first year.

Prices for higher grade ore with fewer impurities have soared above benchmark prices, and with S11D ramping up, nearly 80 percent of Vale’s sales are now considered premium products. The miner is also blending high-grade ore with lower quality material as a way of boosting revenue.

The Indian iron ore industry is on the cusp of a new phase of growth and exports, which were heading southwards for the past few months, are beginning to swell once again. Iron ore export shipments in November 2018 stood at an impressive 0.83 MnT, almost double that of the preceding month’s 0.42 MnT.

Iran's trade surplus of minerals observed a significant growth during the first eight months of the current Iranian year (March 21, 2018-November 22, 2018), Mines and Mining Industries Development and Renovation Organization announced.

World's second largest exporter of iron ore - Brazil has recorded 9% decline in iron ore export volumes to 33.97 MnT in Nov'18 as compared to Oct'18 exports at 37.2 MnT, according to trade statistics released by Brazil customs.

Mobarakeh Steel Company (MSC), Iran’s largest steel company has produced 5.28 MnT crude steel during the 8 months of current Persian year (21 Mar-21 Nov’18). Crude steel production registered a growth of 12% Y-o-Y against around 4.60 MnT produced by MSC during the same period of last Persian year.

Iran, one of the largest billet exporter in MENA region is currently facing economic sanctions from US, owing to which the steel export has affected badly. Iran has exported 1,806,000 MT billet and bloom during the first seven months of current Persian year (21-Mar till 22-Oct’18).

Iran, one of the largest steelmaker in MENA has witnessed a sharp fall in graphite electrode imports. The nation, primarily produce steel through EAF, has imported 3,380 MT GE in Oct’18, registered a downfall of 60% M-o-M against 7,900 MT imported in Sep’18.

According to IMIDRO, Azerbayjani steel has bagged CE certification from Europe in order to export manufactured products to other countries, as well as to promote the brand and create an additional competitive advantage in the steel sector of the country.

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